Rollovers

What Types of Accounts can I roll Over?

The Savings Plan accepts amounts from qualified plans, tax-deferred annuities, deferred compensation governmental plans and Traditional IRAs. You can also roll over SEP IRAs and SIMPLE IRA plans that were established for you at least two years ago by your previous employer. Rollovers of after-tax contributions from an eligible retirement plan are accepted, but not Roth IRAs.

In general, you may only roll over money that is in your name. However, if you are a surviving spouse and you receive a taxable distribution from your deceased spouse’s pension plan, you may roll it over.

There are no limits on the amounts or the frequency with which participants can roll over to the Fund.

Rollover as a result of a qualified disaster distribution

If you sustained an economic loss while living in a Presidential Declared Disaster Area between January 1, 2018 and February 19, 2020, and you took a distribution from a retirement plan or IRA during that time and before June 17, 2020 (including a distribution from the Savings Plan or the Retirement Plan), you may be eligible to contribute this distribution as a rollover contribution to the Savings Plan. Note that these rollovers generally must be completed within three years of the date that you received the distribution. Contact Customer Service to request the Rollover Contribution of Qualified Disaster Distribution for Disaster Declared January 1, 2018 to February 18, 2020 form. Review the form to determine whether you qualify for this special rollover contribution opportunity.

Why Should I roll Over my Savings?

• Your Savings in One Spot—And Growing!
  While your Rollover Account is in the Savings Plan it will receive the same interest credits as all other accounts at the Fund. And like all other accounts in the Fund, it will be shielded from the volatility of the market.
• You Can Withdraw at Any Time
  You may withdraw your Rollover Account at any time regardless of your age, account balance or whether or not you are still working for a Y. Unless this money is rolled over to an IRA or eligible employer plan, it is subject to taxes and penalties:
  • The Fund is required to withhold 20% for federal income taxes (state laws vary). Provide the Fund with a completed IRS Form W-4R to elect a higher percentage of withholding.
  • If the account holder is under age 59½, the IRS may require an additional 10% penalty at the time the account holder files year-end income taxes.

If you leave Y employment with more than $5,000 in the Savings Plan, the Rollover Account can stay at the Fund and may be used towards a lifetime annuity when you retire.

• Borrow from Yourself, and Pay Yourself Back
  While you are working for the Y, you can borrow from your accounts in the Savings Plan. Read more about loans.
• Roll Over for a Great Annuity
  One of the unique benefits of having your retirement savings at the Fund is that, upon retirement, the Fund can convert those account balances directly to an annuity of your choice based on when the Rollover funds are received at the Fund. Rollover contributions received by the Fund before July 1, 2021 are eligible for an annuity, but those with the Fund for less than 10 years will be annuitized at a lower annuity conversion rate. Starting July 1, 2021, newly received Rollover contributions must be at the Fund for 10 years or longer in order to be eligible for an annuity.

Steps to Roll in Your Savings

• Contact your former employer’s plan administrator / IRA custodian to request a rollover. Note we will only accept qualified plans and IRAs as outlined on the YMCA Retirement Fund’s Rollover Authorization form.
• Complete the Fund’s Rollover Authorization form ensuring to indicate the appropriate type of account that will be rolled in.
• Send a copy of the Rollover Authorization form to the Fund and to your former employer’s plan administrator / IRA custodian to initiate the rollover process.
• You will need to contact your former employer’s plan administrator / IRA custodian to confirm their estimated processing timeline for check distribution.
• Once the Fund receives the check, it will deposit it into your account and you will receive a confirmation letter.